As part of its activities aimed at improving the outcomes of public audit through adequate engagement of all relevant stakeholders in the audit process, the Centers for Civic Initiatives (CCI) held a panel discussion titled “Public Audit as a Tool for Improving Performance and Better Management of Resources at the Local Level” in Prijedor. One of the key conclusions was that the good practices of local governments that implement all audit recommendations—thus addressing all identified irregularities in operations and public spending—should serve as a model for other local governments, in order to set a standard to strive toward.
During the event, participants emphasized how crucial it is that local administrations, once audited, establish oversight and continue monitoring the implementation of audit recommendations and follow-up on audit findings. Local self-government units are an integral part of the public sector and, as such, are obliged to apply the principles of efficiency, economy, and effectiveness. If applied properly, these principles ultimately result in effective public administration and a better quality of life for all citizens.
“We knew we had to make a plan to address the shortcomings identified in the Audit Office report, and that plan was adopted by the City Assembly, after which we began its implementation. We accepted all the recommendations, integrated them into our operations, and most importantly, we made sure they were not only accepted on paper but fully applied in practice. We prepared a report on the implementation of audit recommendations, the City Assembly adopted it, and we informed the Audit Office that all recommendations had been implemented. What matters is having vertical and horizontal commitment, energy, and determination to make changes. When that exists, when there is a system, success is inevitable,” said Zoran Adžić, Mayor of Gradiška.
“At today’s panel, together with representatives of municipalities and cities, we discussed how public audit can lead to better performance and improved governance at the local level. The goal is to raise awareness and responsibility for implementing the recommendations auditors give to local communities. The most common picture in audit reports is the repetition of findings and unimplemented recommendations from previous audits, along with opinions ‘with reservations.’ On average, there are 14 recommendations per local community, with a recommendation implementation rate of about 42%. Around 75% of audit opinions are issued ‘with reservations,’ and a total of about 900 recommendations have been directed at all local communities, of which only three received clean, positive audit opinions,” stated Dr. Bojan Ćurić, Senior Financial Auditor at the Supreme Audit Office of the Public Sector of Republika Srpska.
“The Supreme Audit Office of the Public Sector of Republika Srpska audited 21 municipalities and cities for 2022 and delivered a total of 293 recommendations for addressing identified irregularities in operations. CCI initiated the introduction of parliamentary oversight of the implementation of audit recommendations, and in the previous period 14 municipalities and cities discussed audit reports at council sessions. In the coming period, institutions are expected to report to local parliaments on their actions in response to recommendations. Through examples of good practices from cities that improved their performance by following audit findings, we wanted to highlight the importance of strengthening the audit process and implementing recommendations,” said Dijana Ban, representing CCI.
Today’s panel discussion was attended by representatives of municipalities and cities that are being audited this year, as well as representatives of those whose audit reports were published last year, to learn from good practices of parliamentary oversight over the implementation of audit recommendations in other municipalities—something that will certainly facilitate their organization and further work on this issue. There was a general consensus among local self-government units to establish parliamentary oversight over audit reports in order to improve institutional efficiency.